Food Industry Association: Producers have no idea what will be taxed next

In the opinion of Sirje Potisepp, chairwoman of the Estonian Food Industry Association, the tax environment hasn't been “normal” for a while. In the current situation, producers couldn't even imagine any more what the government was going to tax next, Potisepp said.

The Ministry of Finance announced its plan on Tuesday to include certain dairy products in the planned tax on sugary drinks, if only to level the playing field among producers, as the state would later ask the European Commission to allow them to exclude dairy from the new tax.

Potisepp told ERR on Wednesday that though she had been present at the according meeting of the Riigikogu's Financial Affairs Committee, she had not been told about this plan, or at least did not hear it explained to a sufficient extent.

“We are astonished by this approach of the ministry, where it isn't understandable what they want at all, and which products they actually want to tax. This doesn't need to be this way, and that's why we've made the very clear proposal to stop work on this bill,” Potisepp said, adding that the bill should be thrown out, and work on the issue start over.

The government had rejected its duty to carry out thorough analyses before changing the bill which would make it possible to actually determine to what extent the tax changes would influence people's consumption behavior, and how it would affect the Estonian economy and industry, Potisepp said. Instead, things had been rushed, and there hadn't been any time at all for thorough analysis.

The current bill didn't correspond to European Union law, and even its authors had admitted that there were issues concerning the government's preference of some producers over others. All of this needed to be discussed and agreed on with the European Commission, Potisepp said.

At this point, the Association wasn't ready to make any more proposals, but would remain of the opinion that no new taxes on any food products should be introduced at all, she added.

Read other news on the city site of Tallinn.
Food_Industry_Association taxes
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...